The Canadian dollar has stabilized on Monday, as USD/CAD trades in the mid-1.24 range. The loonie took a beating last week, as the pair jumped an astounding 450 points. There are no Canadian or US releases on Monday, so with the markets not having any numbers to work with, traders can expect a quiet North American session. On Friday, Canadian releases were mixed, as Retail Sales and CPI beat their estimates, while CPI continued to decline.
Things have gone from bad to worse for the Canadian currency, which was pummeled mercilessly by the USD/CAD last week. The pair is currently trading at its highest level since April 2009. The pair took a hit late in the week following an unexpected rate cut by the Bank of Canada. The central bank lowered rates from 1.00% to 0.75%, citing weak inflation and the falling price of oil, which is Canada’s biggest export.
USD/CAD January 26 at 16:20 GMT
- USD/CAD 1.2431 H: 1.2475 L: 1.2414
USD/CAD Technicals
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2190 | 1.2261 | 1.2387 | 1.2469 | 1.2543 | 1.2680 |
- USD/CAD has shown little movement during the day. The pair tested resistance at 1.2469 in the European session.
- 1.2469 is a weak resistance line. 1.2543 is stronger.
- 1.2387 is an immediate support line.
- Current range: 1.2387 to 1.2469
Further levels in both directions:
- Below: 1.2387, 1.2261, 1.2190, 1.2096 and 1.1975
- Above:1.2469, 1.2543, 1.2680 and 1.2761
OANDA’s Open Positions Ratio
USD/CAD ratio is pointing to gains in short positions on Monday. This is consistent with the pair’s movement, as the Canadian dollar has recorded small losses. The ratio has a majority of short positions, indicative of trader bias towards the Canadian dollar moving to higher ground.
USD/CAD Fundamentals
- There are no US or Canadian releases on Monday.